Question

Lydia finds a car that costs $13,000, and she has $2,500 saved for a down payment. If she qualifies for a 5% interest rate, how much will the interest be calculated on?

Select the best answer from the choices provided.



$10,500



$13,000



$15,500



$12,000

Answer 1

A is the answer to your question

Answer 2

Answer: The correct option is

(A) $10,500.

Step-by-step explanation: Given that the Lydia finds a car that costs $13,000 and she has $2,500 saved for a down payment. She qualifies for a 5% interest rate.

We have to find the value on which interest will be calculated on.

According to the given information, we have

Car cost 13,000

Down Payment 2,500

Balance amount 10,500

Thus, the value on which interest will be calculated is 10,500.

Option (A) is CORRECT.